National Driver Offender Retraining scheme run by UKROEDS Limited. Under-reporting revenue by ~£80 million per year?
UKROEDS fails to disclose its PSC is Road Safety Trust in Companies House
Letter submitted to UKROED Limited on 19 April 2024.
This letter addresses queries and complaints arising from a due diligence report on Police and Crime Commissioner Katy Bourne and Chief Constable Jo Shiner, available at:
Dear UKROED Leadership team,
I hope this letter finds you well. I am writing to seek clarification and address concerns regarding the financial reporting of speed awareness courses operated by UKROED Limited. After conducting a detailed analysis of the available data, which is appended below this email, discrepancies have been identified in the reported revenue figures compared to the estimated revenue based on course charges and the number of courses completed.
As per the information accessed from the Companies House record and UKROED website, it is evident that UKROED Limited collected income of £88,262,606 for the year ended 31st March 2023, and £76,083,182 for the previous year. However, upon further examination and calculation based on course charges obtained from Adrian Flux and the number of courses completed, a significant discrepancy in revenue reporting has emerged.
The discrepancy in reported revenue and estimated revenue based on course charges and completion numbers is as follows:
For the year 2023: Estimated average revenue: £172,017,374; Reported revenue: £88,262,606; Shortfall: £83,754,768.
For the year 2022: Estimated average revenue: £157,300,382; Reported revenue: £76,083,182; Shortfall: £81,217,200.
The accuracy of these calculations is contingent upon the reliability of the course charges provided by Adrian Flux. Therefore, I kindly request confirmation of the accuracy of these calculations to ensure the integrity of the analysis.
Furthermore, it has come to my attention that UKROED Limited has not declared its ultimate controlling party in the Companies House registry, which constitutes a breach of Section 790 of the Companies Act. I urge you to address this matter promptly to ensure compliance with regulatory requirements.
In light of the discrepancies identified, I respectfully request a thorough review of the provided information and calculations for accuracy. Please inform me of any errors or areas requiring further clarification.
Thank you for your attention to this matter. I look forward to your prompt response and resolution of these concerns.
Sincerely,
Alison Wright
Due Diligence report - UKROED Limited
Speed awareness courses
The most recent accounts for UKROED Limited were accessed via the filing history in the Companies House record, “Full accounts made up to 31 March 2023” (UKROED LIMITED filing history - Find and update company information - GOV.UK (company-information.service.gov.uk)).
Speed awareness courses known as the National Driver Offender Retraining Scheme (NDORS) are operated and administered by UKROED Limited.
In the year of operation, UKROEd Limited collected income of £88,262,606 (2022: £76,083,182). After paying out the police force cost element of the charges, the Scheme generated a gross surplus of £7,175,059 (2022: £6,224,522), a margin of 8.1% (2022:8.2%) The overall surplus after running costs for the year was £1,649,095 (2022: £2,285,239). The distribution to the Road Safety Trust was £1, 649 (2022: £2,285,239).
For the year ended 31st March 2023, 84% (2022: 83%) of eligible offered a course went on to complete a course.
The element of the Scheme Participation Charge income recovered by the Police Forces during the year was £80,452,575 (2022: £69,131,535)
The Road Safety Trust is correctly declared as UKROED Limited’s ultimate parent undertaking, within the 2022-23 accounts.
However, UKROED Limited does not declare its ultimate controlling party in the Companies House registry. This is a breach of Section 790 of the Companies Act (UKROED LIMITED persons with significant control - Find and update company information - GOV.UK (company-information.service.gov.uk)).
The UKROED website was located via an internet search and the trends and statistics accessed (Trends & Statistics | UKROEd https://www.ukroed.org.uk/scheme/trends-statistics).
In 2023 a total of 1,931,283 NDORS courses were completed, 2022: 1,764,543.
Estimating the income generated from the total number of courses completed, at £100 per course, this would generate an income of £193,128,300 in 2023 (2022: £176,453,000), whereas the accounts report “In the year of operation, UKROEd Limited collected income of £88,262,60 (2022: £76,083,182).”
More accurate data was sought and the following scheme of costs was located (The complete guide to NDORS courses and their costs | Adrian Flux https://www.adrianflux.co.uk/blog/2024/03/complete-guide-ndors-courses/)
National Motorway Awareness Course (NMAC) (classroom or online)Exceeding the speed limit on a motorway and other infringements on a motorway 3 hours £78.00 – £92.00
National Rider Risk Assessment Course (NRRAC) (classroom or online)Riders who have been brought to the attention of police through their riding behaviour 3 hours £69.80 – £132.00
National Speed Awareness Course (NSAC) (classroom or online) Speeding offences 2 hours 45 minutes£80.00 – £100.00
Safe and Considerate Cycling Course (SCCC) (online) Cycling offences 30 minutes£38.40
Safe and Considerate Driving (SCD) (classroom/road) Carelessness leading to an accident 6 hours 55 minutes£120.00 – £200.00
What’s Driving Us? (WDU) (classroom or online)Deliberate misdemeanour 3 hours £73.00 – £95.00
Your Belt Your Life (YBYL) (online) Failure to use a seat belt or appropriate child seat 30 minutes £54.00
The detail provided by UKROED Statistics provides the following breakdown (Trends & Statistics | UKROEd):
The UKROED Limited accounts for 2023 stated “In the year of operation, UKROEd Limited collected income of £88,262,606 (2022: £76,083,182)”.
Using this information a spreadsheet was constructed to calculated the estimated average revenue for 2023 and 2022, based on the number of courses, and course charge, excluding motorcycling retraining, which were omitted in the charge schedule located.
This table calculates the estimated average revenue, using the actual number of courses delivered as reported by UKROED Limited, and Adrian Flux’s course charges (The complete guide to NDORS courses and their costs | Adrian Flux).
Revenue generated:
2023 Low: £153,128,884 High £190,905,864 Average £172,017,374
2022 Low: £140,014,081 High £174,586,683 Average £157,300,382
The balance or “shortfall” being 2023: £83,754,768 and 2022: £81,217,200 (Estimated average revenue less reported revenue).
Conclusion: Significant discrepancies in estimated and reported revenue.
Regarding speed awareness courses operated by UKROED Limited, discrepancies arise in their financial reporting. While the company's accounts indicate a lower income figure, a more detailed analysis based on course charges and the number of courses completed suggests a significant underreporting of revenue. The discrepancy amounts to £83.4 million in 2023 and £81.2 million in 2022, as calculated based on the provided data.
The accuracy of the calculation regarding underreported revenue hinges on the reliability of the course charges provided by Adrian Flux. Thus, confirmation of the accuracy of this calculation is requested to ensure the integrity of the analysis.
Please review the provided information and calculations for accuracy, and inform me of any errors or areas requiring further clarification.